The clinking of champagne flutes and the celebratory toasts might be a little quieter at Moët Hennessy headquarters. In a surprising turn of events that has the luxury world buzzing, the prestigious wine and spirits arm of the LVMH empire – the very name synonymous with celebratory bubbles and top-shelf spirits – is reportedly bracing for a significant restructuring. According to a bombshell report by the Financial Times, Moët Hennessy is set to cut more than 10% of its global workforce, a move that signals a dramatic shift in strategy to navigate the choppy waters of falling sales and escalating costs. With approximately 9,400 employees currently on their payroll, this shake-up could see around 1,200 roles being eliminated, effectively rolling back their staffing levels to where they stood back in 2019. What's causing this champagne slowdown? Let's uncork the details.
In an internal video message that has reportedly circulated among Moët Hennessy staff, Chief Executive Jean-Jacques Guiony laid bare the stark reality facing the division. He revealed that revenues have alarmingly retreated to the levels they were at back in 2019. While a return to pre-pandemic figures might sound stable on the surface, the underlying issue is the dramatic surge in operating costs, which have reportedly ballooned by a staggering 35% over the same period. Guiony didn't mince his words, stating, "This was an organisation that was built for a much larger size of business." The sobering implication? The anticipated rebound in sales isn't materializing as quickly as hoped, leading to a necessary recalibration of their operational structure.
While the news of potential job losses is undoubtedly unsettling, Moët Hennessy appears to be navigating this restructuring with a degree of caution. The majority of the workforce reduction is reportedly planned to occur through natural attrition – meaning not filling vacant positions as employees leave – and by strategically reassigning staff to other areas within the vast LVMH group. This approach suggests a focus on minimizing outright layoffs and leveraging the breadth of the luxury conglomerate to absorb some of the impacted roles. However, the leadership at Moët Hennessy has remained tight-lipped about a specific timeline for these reductions, leaving employees in a state of uncertainty. Adding to the belt-tightening measures, a company-wide hiring freeze has reportedly been in effect since the latter half of 2023, further signaling a cautious approach to staffing.
The restructuring announcement comes on the heels of some concerning sales figures for Moët Hennessy. In the first quarter of 2025, organic sales for the wine and spirits division plummeted by a significant 9%. This stark decline makes it the weakest performing division within the LVMH behemoth, where overall organic sales across the entire luxury empire were down by a more moderate 3%. This underperformance within a typically robust sector of LVMH underscores the unusual nature and scope of the challenges Moët Hennessy is currently facing.
Adding a layer of gravity to the situation, Deputy CEO Alexandre Arnault, who joined the Moët Hennessy division alongside Guiony in February, reportedly acknowledged to staff the exceptional nature of this downturn. He pointed out the typical resilience of LVMH's diverse portfolio, stating that usually, when one sector like wines and spirits faces headwinds, other powerhouses like fashion tend to perform strongly, offsetting any losses. However, the current climate appears to be impacting multiple areas, highlighting a broader economic uncertainty that even the seemingly impenetrable world of luxury isn't entirely shielded from.
Interestingly, the internal video seen by the Financial Times suggests that discussions surrounding potential job cuts were already underway even before Guiony and Arnault took the reins of Moët Hennessy. The hiring freeze that has been in place since the second half of 2023 indicates that the company was already anticipating the need to streamline its operations. Furthermore, around 70 roles have already been eliminated in China this year, out of a planned reduction of 100, suggesting that targeted workforce adjustments were already in motion in key markets.
In an official statement, a Moët Hennessy spokesperson confirmed the reported moves, stating, "While Moët-Hennessy’s business has returned to its 2019 level, Moët-Hennessy announced yesterday its intention to adjust its organisation and gradually return to its 2019 staffing levels, primarily by managing its natural turnover and not filling vacant positions." This carefully worded statement corroborates the reports of a significant restructuring focused on aligning staffing levels with current sales realities.
Despite the sobering news, Chief Executive Jean-Jacques Guiony offered a message of cautious optimism to the Moët Hennessy staff. He reportedly reassured them that the current downturn is part of a cyclical business pattern, stating, "Things are bad but they will become better." However, he also injected a note of uncertainty regarding the future outlook, specifically mentioning the added layer of complexity posed by US tariffs, which could further impact the company's performance in a key market.
Moët Hennessy's decision to implement significant workforce reductions serves as a stark reminder that even the most prestigious and seemingly recession-proof sectors of the economy are not immune to global economic shifts and changes in consumer demand. While the allure of luxury goods often endures, periods of economic uncertainty can lead to shifts in spending habits, even among affluent consumers. The restructuring at Moët Hennessy will be closely watched by industry analysts as a potential bellwether for the broader luxury market and a signal of the challenges even iconic brands face in navigating a complex and evolving global economic landscape. Will this be a temporary fizzle, or a sign of a longer period of adjustment for the purveyors of celebratory indulgence? Only time will tell.
